§ Mr. CohenTo ask the Chancellor of the Exchequer what has been the total amount of pension fund surplus represented by(a)employer/employee contribution holidays, (b) improved benefits and (c) taxable refunds to the employer in each year since 1986; and what proportion of surplus reduction is represented by each method.
§ Mr. DorrellInformation is not available in the form requested. The tables below give information on large self-administered pension funds reporting to the Inland Revenue on proposed action to remove surpluses following the provisions in the Finance Act 1986, and on total refunds to employers from occupational pension schemes.
Large Self Administered Schemes, bv method of reduction of Surplus. 1987–88 to 1992–931 £ million Method of reduction Amount of reduction Proportion of surplus reduction Per cent. Contributions holiday (employer) 7,932 38 Contributions holiday (employee) 155 1 Contributions reduction (employer) 3,169 15 Contributions reduction (employee) 566 3 Refund to employer2 1,174 6 Increase in benefits 7,471 36 New benefits 106 1 Total 20,574 1The figures shown represent the total to be eliminated by each method. Some of the planned reductions are timed to fall in years subsequent to 1992–93. Amounts are based on the actuary's estimated reduction for each category. 2 The figures for refunds to employers exclude amounts paid over by schemes reported to be wound up in each year. 503W
Refunds to the employer from all occupational pension schemes Schemes reporting in refunds £ million 1987–88 85 1988–89 208 1989–90 380 1990–91 578 1991–92 403 1992–93 235